Why you should think of money in terms of Bitcoin and Ethereum
One of the most challenging concepts for new crypto investors is not thinking in dollars. You have thought in your native currency your entire life, and it is difficult to unlearn that habit.
Changing the way I thought when researching digital assets let me see a different perspective. If your competition is other individuals and they all think one way you can gain an advantage by attacking the problem differently. With this in mind, let’s look at some examples.
Historically, the Dominance of Bitcoin recovering in this region sparks a massive move. Bitcoin dominance calculates the percentage of total market capitalization compared to Bitcoin’s market cap. Take a gander at the chart below.
This chart shows how money flows out of BTC during a long-term bullish movement to minimize risk as much as possible. If you look at the above graph, you can see before 2017 a period of high percentage dominance (above 90%), followed by the period of rapid change ending in February 2018. That is overlayed at the end of the chart, and so far, we have followed the last bull run reasonably closely.
What does this mean to new investors?
If the dominance of bitcoin to altcoins goes higher, you have more BTC and ETH buying power.
Stop thinking of altcoins in terms of dollars and think in BTC and ETH.
These charts will show you why…
XMR/BTC
I am starting with the Monero chart because of longevity; Monero has been around for a long time and has stayed prominent in the top alts in the last seven years. I am not saying BUY XMR; this is just a reference to how thinking in BTC and ETH works.
Here is the 1-Day Monero chart for the last seven years. If you are interested in buying XMR with your Bitcoin, there has never been a better time since August 2016. So while XMR in the 300USD range seems expensive for people thinking in USD, the people with large sums of bitcoin (the whales moving the crypto market) don’t think that way.
XLM/BTC
I am choosing XLM/BTC because it has been around for a long time. Similar time frame; 7 years worth of data on the XLM/BTC chart shows massive potential. As the price of Bitcoin continues to rise, the risk of diversifying into other digital assets becomes lower.
On the chart below, we can see a 2300% increase happened in similar conditions in 2017.
Again I am not saying instantly buy XLM for MEGA PROFITS. I am simply pointing out that these similar conditions in the past have shown massive potential.
Research Differently
This exact mechanism applies to Ethereum, and most of these newer DeFi alts started within the last few years before the previous BTC halving event. While they don’t have massive amounts of data for analysis since they are new, many blue-chip DeFi tokens are already pulling their weight and are undervalued to BTC/ETH. Instead of telling you which projects to invest in, I want to teach you how to picture a complex idea differently and grow as an investor. If you have any questions, leave a comment below.
NFTs crushed all previous records of unique users and daily volume this week. Profits are shaping up incredibly, as top-volume projects are seeing exponential growth.
Lonely Alien Space Club
I have been calling this one since mint. The developers genuinely care and have built a fantastic community. Breaching 3.2k users and 2k of those users only owning one alien, the floor becomes thinner and thinner. I can’t wait to look back on this project in two months. I know a lot of growth will have happened, and the community will be stronger than ever.
Crazy Lizard Army
This project had a significant setback with the development team being noncommunicative and delaying the evolution lab contract debut. Also, the dev team had issues with the artwork for the dragon evolution, but the recent sneak peeks are improving each release. If they can’t bring the caliber of artwork up to the quality of the lizards, people will not want to combine three lizards into a poorly designed and rushed dragon. I am still holding these and will be looking to move on soon if nothing is delivered.
CipherSquares
I missed the mint of this beautiful project but was able to snag six on OpenSea. The brand they want to build is impressive, well thought out, and very extensive. The background of this project is also unique; the dev team created a puzzle to find solutions within the NFTs. There is a holy grail ciphersquare, that has yet to be decoded, and when the seed phrase is discovered, the winning team receives 35☰ , and whichever Ciphersquare is revealed as the holy grail, the owner receives 15☰. So essentially, the team is incentivizing discourse and social activities to grow the community. This is also before they release their Neon Junkies avatar NFT to all holders of ciphersquares within the next week. Check this one out for sure.
That’s all for the free weekly Crypto Crier. If you enjoyed this article, please like and share. If you have any questions, please leave a comment, and I can answer your questions further. As with all of my writing, this is not financial advice and is my opinion. I cannot stress enough how important it is to do your own research on all financial endeavors. I hope these newsletters can help investors realize the current financial systems’ downfalls and usher in a more equitable system without middlemen.
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